JPMorgan Chase (JPM) kicks off Earnings Season

JPMorgan Chase (JPM) announced its fourth-quarter 2025 earnings this morning, reporting adjusted earnings per share (EPS) of $5.23, which surpassed analyst expectations of $5.01. Revenue came in at $46.77 billion vs $46.2 billion expected by Wall Street. The company said profit fell 7% to $13.03 billion, or $4.63 per share, because of a pre-announced $2.2 billion reserve tied to its takeover of the Apple Card loan portfolio from Goldman Sachs. Excluding the 60-cent-per-share hit from that transaction, adjusted earnings came in at $5.23.

The higher-than-expected revenue number was due to net interest income rising by 7% to $25.1 billion, roughly matching analyst expectations for NII. Trading was a bright spot for JPMorgan Chase last quarter. Equities trading revenue surged 40% to $2.9 billion, about $350 million more than analysts had expected. The company cited strength across operations, especially in its business catering to hedge funds. Fixed income trading revenue rose 7% to $5.4 billion, about $110 million more than expected.

Dealmaking revenue fell 4% from the year ago quarter, missing expectations due to lower fees in bond and equity underwriting. Its investment banking fees rose 8% for the year to $9.6 billion while client trading rose 8% to $30 billion.

Banking stocks have been in rally mode over the last year as the environment continues to be a Goldilocks scenario. A rise in Wall Street trading, falling interest rates, stable consumer credit and deregulation are providing a lift for the sector. The Wealth effect is also in full force as the equity market is at all-time highs. High stock levels have also buoyed banks’ wealth management divisions.

JPMorgan provided guidance for 2026, projecting net interest income (excluding Markets) of approximately $95 billion, an increase from 2025 results. The bank also anticipates expenses of around $105 billion for the full year.

In a statement, CEO Jamie Dimon said the U.S. economy has been "resilient," adding that, "consumers continue to spend, and businesses generally remain healthy." Dimon cautioned, however, that, "markets seem to underappreciate the potential hazards—including from complex geopolitical conditions, the risk of sticky inflation and elevated asset prices."

JPMorgan’s stock has rallied 35% over the past year and sits just 3% off last week’s all-time high. The stock is up slightly after the results, and it may be a good sign for another solid earnings season. We get more clarity on the sector over the next couple of days with results due from Bank of America (BAC), Citigroup (C), Well Fargo (WFC), and Goldman Sachs (GS). 

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